Failed to execute request because the App-Domain could not be created. Error: 0x80070005 Access is denied.

You may also see this on your browser screen when you attempt to use the application.

Quote:

Server Application Unavailable
The web application you are attempting to access on this web server is currently unavailable. Please hit the "Refresh" button in your web browser to retry your request.

Administrator Note: An error message detailing the cause of this specific request failure can be found in the application event log of the web server. Please review this log entry to discover what caused this error to occur.

The appliation may compile fine, but will not run.

Here are some things to check:
It may be that there are folder permissions issues, especially if this applications creates or uploads files. Add these users to the permissions for the folders and sub-folders to read and write: